Black Tuesday on the Warsaw Stock Exchange caused by panic over KGHM

APA - Austria Presse Agentur
opublikowano: 31-01-2006, 19:37

Warsaw (Puls Biznesu) – The last day of January will be long remembered by stock players. Especially by KGHM shareholders after the copper producer suffered its highest daily loss in 8.5 years.

Warsaw (Puls Biznesu) – The last day of January will be long remembered by stock players. Especially by KGHM shareholders after the copper producer suffered its highest daily loss in 8.5 years.

KGHM copper producer dived 12.6 percent to PLN 10.5 (EUR 2.7). Yesterday in the afternoon, KGHM presented its forecast providing for “only” PLN 1.84 billion of net income. Sales are to amount to PLN 8.12 billion. According to October estimates, net income in 2005 amounted to PLN 2.078 billion against PLN 7,.540 billion of sales. Bigger sales, smaller income plus higher costs of copper production discouraged investors. Bioton insulin producer and Lotos fuel company lost, too. PKN Orlen fuel giant and Pekao bank ended above WIG20 average. Kety was the only blue chip which has not lost today. In recent days, the company has shed strongly after it suffered losses caused by the fire.

WIG20 was adversely affected as KGHM constitutes 19 percent of its portfolio. The average was 4.53 percent, or 135 points down and ended at 2,804.92 points Shares of blue chips worth PLN 1.32 billion changed hands, fourth highest result in the WSE history. KGHM shares worth PLN 721m changed hands, the fifth result in the history as far as the trade with shares of one company is concerned.

Other indices fell less. WIG shed 3.2 percent, while MIDWIG below 2 percent. Zloty depreciated, another factor disturbing rises in the WSE. When the MPC announced its interest rate cut of 25 points at 2.30 p.m., which was expected, the Polish currency rebounded. It was too late for the WSE, however.

Gant was the exception today. The company jumped 100 percent. In the middle of December, Gant’s shareholders’ meeting decided to issue over 4.88m shares of D series with the right for present shareholders. Funds will be spent to develop construction services.

(PLN 1 = EUR 0.261)

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Podpis: APA - Austria Presse Agentur